In a transformative move aimed at enhancing employee satisfaction and financial stability, HCLTech has announced a significant restructuring of its pay structure. The company has decided to merge its quarterly variable pay with the fixed salary for all employees, a decision that was unveiled by Chief People Officer Ram Sundararajan during the earnings call on October 13, 2025, for the quarter ending September 30, 2025. This strategic shift is designed to provide greater income predictability for employees, reflecting HCLTech’s commitment to supporting its workforce amid evolving market conditions.
The integration of variable pay into fixed salaries marks a pivotal change in how HCLTech compensates its employees. Traditionally, variable pay has been tied to performance metrics and quarterly results, which can lead to fluctuations in income. By converting this variable component into a fixed amount, HCLTech aims to offer its employees a more stable financial foundation. This change is particularly significant in the current economic climate, where job security and financial predictability are paramount concerns for many workers.
During the earnings call, Sundararajan emphasized the importance of this decision, stating, “We have also taken a decision to move the quarterly variable pay and convert that into fixed pay and merge it with fixed salary for all our employees.” He further elaborated that this initiative is part of a broader strategy to support employees who contribute significantly to the company’s success. The announcement comes on the heels of a strong quarterly performance, prompting the company to roll out salary increments effective from October 2025.
HCLTech’s commitment to its employees is further underscored by its recent workforce expansion. In the second quarter of FY26, the company added 3,489 new employees, bringing its total headcount to an impressive 226,640. This growth reflects HCLTech’s ongoing efforts to strengthen its talent pool and meet the increasing demands of its clients. Notably, voluntary attrition has decreased to 12.6%, a reduction of 20 basis points from the previous quarter, indicating improved employee retention and satisfaction.
The company has also made significant strides in onboarding fresh talent. In Q2 FY26 alone, HCLTech welcomed 5,196 freshers, contributing to a total of 7,180 new hires in the first half of the fiscal year. This figure is nearly double the number of freshers hired during the same period last year, showcasing HCLTech’s aggressive recruitment strategy. Sundararajan noted, “If you look at what we have done during H1 this year, that’s almost 92% of what we did in the entire year last year. So we are on track to do what we plan to do this year in terms of fresher additions.”
While the company is expanding its workforce, it is also undergoing a restructuring process to address skill and location mismatches, particularly in the context of post-acquisition integrations. Sundararajan clarified that this restructuring is not indicative of broad-based layoffs but rather a redeployment initiative aimed at aligning resources with growth priorities. “On the people’s side, it is largely the skill location mismatch. It’s not a capacity reduction agenda. It’s basically rebalancing the demand supply when it comes to skills and locations,” he explained. This approach highlights HCLTech’s proactive stance in managing its workforce effectively while ensuring that employees are positioned where their skills are most needed.
Financially, HCLTech reported robust results for Q2 FY26, with revenue reaching ₹31,942 crore, marking a sequential increase of 5.2% and a year-on-year growth of 10.7%. On a constant currency basis, revenue rose by 2.4% quarter-on-quarter and 4.6% year-on-year. These figures reflect the company’s resilience and adaptability in a competitive market. Additionally, HCLTech’s advanced AI revenue crossed the $100 million mark for the first time, accounting for approximately 3% of its total revenue. This milestone underscores the growing importance of artificial intelligence in the company’s overall business strategy.
One of the standout achievements highlighted during the earnings call was the new deal bookings, which exceeded $2.5 billion. Remarkably, this growth occurred without any mega-deals driving the numbers, indicating a diversified approach to client acquisition and project engagement. This achievement not only showcases HCLTech’s ability to secure substantial contracts but also reflects its strategic focus on building long-term relationships with clients across various sectors.
As HCLTech continues to navigate the complexities of the IT landscape, the company’s emphasis on employee welfare, talent acquisition, and financial performance positions it well for future growth. The decision to merge variable pay with fixed salaries is a testament to HCLTech’s commitment to fostering a supportive work environment where employees feel valued and secure. By prioritizing income stability and investing in its workforce, HCLTech is not only enhancing employee morale but also laying the groundwork for sustained organizational success.
In conclusion, HCLTech’s recent initiatives represent a forward-thinking approach to workforce management and compensation. The merger of variable pay into fixed salaries, coupled with significant workforce expansion and a focus on talent development, illustrates the company’s dedication to its employees and its strategic vision for the future. As HCLTech continues to adapt to changing market dynamics, its commitment to employee stability and growth will undoubtedly play a crucial role in its ongoing success in the competitive IT industry.